Germany’s inflation rate increased in November but fell short of economists’ predictions, showing signs of disinflation with a notable monthly decline.
The Federal Statistical Office announced on Thursday that consumer prices rose by 2.2% year-on-year in November, a slight increase from 2.0% in October but below the anticipated 2.3%. The monthly consumer price index (CPI) fell by 0.2%, marking the largest drop since November 2023.
Energy prices, which have been a major factor in price fluctuations, saw a 3.7% decrease year-on-year in November, though this was less significant than the 5.5% decline recorded in October. Meanwhile, services inflation remained steady at 4% year-on-year, maintaining upward pressure on the overall inflation rate. Core inflation, which excludes food and energy prices, rose to 3.0% year-on-year, up from 2.9% in October and reaching the highest level since May.
The Harmonised Index of Consumer Prices (HICP), used for comparing inflation across the eurozone, stayed at 2.4% year-on-year, falling short of expectations for a 2.6% increase. Monthly HICP data recorded a sharp 0.7% decline, marking the largest contraction over the past year and surpassing the anticipated 0.5% drop.
In response to these figures, Bund yields fell to 2.14%, while Germany’s DAX index gained 0.5%. The euro experienced a slight weakening.
